EBC Financial UK Alleges a Former Director “Misappropriated Funds”. Is It Only $3.5 Million Hole?
The UK unit of EBC Financial revealed in its annual financial statements that one of its “former directors had misappropriated funds from the company’s bank account.” The company, however, did not name the former director, but highlighted that “the matter is currently under investigation by the authorities whilst the company is considering its legal options.”
A $3.5 Million Hole or More?
The broker first disclosed the alleged fund misappropriation in its financial statements for the financial year ended 30 September 2023. “The results include the write-off of £747,000 (about $994,000) of funds misappropriated by a former director,” the company noted.
Interestingly, it appears that the alleged fund misappropriation was not limited to only one financial year.
The broker’s FY24 and FY25 filings did not explicitly mention any “write-off”. However, both reports added “exceptional” costs of £717,500 (about $955,000) and over £1.19 million (about $1.58 million) for the two years, respectively.
If all those figures were counted as alleged “misappropriation”, then the total figure, so far, stands at about £2.66 million (over $3.53 million).
However, none of the annual financial statements names any former director in connection with the alleged deed.
The financial statements for the current year, when released, might put a cap on the exact alleged misappropriation amount.
Finance Magnates approached EBC to learn the details of the allegations, but did not receive any response as of press time.
The Owner Joined the Board, but Briefly
EBC offers forex and contracts for difference (CFD) trading globally through its offshore licence. Its UK unit, however, only offers the products to professional traders. The group’s offshore Cayman Islands unit, which provides services to retail traders, is a wholly owned subsidiary of the UK entity.
According to Companies House, EBC UK currently has four active directors: Savvakis Ioannou, Christopher Potts, Rubinder Rehal, and Christopher Stiegeler. Among the former directors are two names: David Barrett and Qin Huazheng.
Barrett was the CEO of the UK unit, who resigned from the role on 24 March 2026, according to the Financial Conduct Authority register. Rehal replaced him in the top role at the UK entity.
Huazheng, a Chinese national, meanwhile, is the ultimate owner of EBC. He did not take on any executive role and stepped down as a director of the UK unit last week, after only four months in the role.
EBC UK’s FY25 revenue, meanwhile, jumped by 200% to almost £400,000, but the company posted a net loss of £1.6 million.
The UK unit of EBC Financial revealed in its annual financial statements that one of its “former directors had misappropriated funds from the company’s bank account.” The company, however, did not name the former director, but highlighted that “the matter is currently under investigation by the authorities whilst the company is considering its legal options.”
A $3.5 Million Hole or More?
The broker first disclosed the alleged fund misappropriation in its financial statements for the financial year ended 30 September 2023. “The results include the write-off of £747,000 (about $994,000) of funds misappropriated by a former director,” the company noted.
Interestingly, it appears that the alleged fund misappropriation was not limited to only one financial year.
The broker’s FY24 and FY25 filings did not explicitly mention any “write-off”. However, both reports added “exceptional” costs of £717,500 (about $955,000) and over £1.19 million (about $1.58 million) for the two years, respectively.
If all those figures were counted as alleged “misappropriation”, then the total figure, so far, stands at about £2.66 million (over $3.53 million).
However, none of the annual financial statements names any former director in connection with the alleged deed.
The financial statements for the current year, when released, might put a cap on the exact alleged misappropriation amount.
Finance Magnates approached EBC to learn the details of the allegations, but did not receive any response as of press time.
The Owner Joined the Board, but Briefly
EBC offers forex and contracts for difference (CFD) trading globally through its offshore licence. Its UK unit, however, only offers the products to professional traders. The group’s offshore Cayman Islands unit, which provides services to retail traders, is a wholly owned subsidiary of the UK entity.
According to Companies House, EBC UK currently has four active directors: Savvakis Ioannou, Christopher Potts, Rubinder Rehal, and Christopher Stiegeler. Among the former directors are two names: David Barrett and Qin Huazheng.
Barrett was the CEO of the UK unit, who resigned from the role on 24 March 2026, according to the Financial Conduct Authority register. Rehal replaced him in the top role at the UK entity.
Huazheng, a Chinese national, meanwhile, is the ultimate owner of EBC. He did not take on any executive role and stepped down as a director of the UK unit last week, after only four months in the role.
EBC UK’s FY25 revenue, meanwhile, jumped by 200% to almost £400,000, but the company posted a net loss of £1.6 million.
